FLInsurance.com Urges Customers to Carefully Consider Before Modifying Insurance Coverage

Many people agree that a way to save money on homeowners is to raise the homeowner’s insurance deductible or lower the premium. Although this is a great idea that can save money, it is important to carefully think through the idea before actually doing so.

When it comes to saving money, many people are fond of any money saving tips that are available. But before increasing the deductible of a homeowner’s insurance policy, it is important to carefully consider the pros and cons of doing so. While it is true that increasing the homeowner’s insurance deductible may seem like a smart strategy, it is necessary to recognize that a policyholder is now further responsible for a deductible before the insurance policy begins to pay for any damage to the property. For example, if a hurricane coverage policy covers $500,000 and the homeowner’s policy has a two percent deductible prior to issuing any insurance funds, the policyholder is responsible for $10,000 before the insurance policy begins to pay out. While it is true that raising a deductible will likely lower insurance costs, it is also important to consider that should a disaster occur, the deductible has the ability to be covered with savings or a loan.

Just as with the deductible, it is especially important to carefully think through the pros and cons of adjusting the homeowner’s insurance premium. One of the most important things to remember is that homeowner’s insurance protects individuals and the property in the event of liability, fire or other disaster. As a result, it is important that the insurance coverage adequately protects the property. It is important to be sure that the insurance coverage meets the replacement needs should anything happen. Though it may sound tempting to save money in the short term by not having complete coverage, it is more expensive in the grand scheme if something happens to the property. With a state such as Florida that is so prone to hurricanes, tornadoes and flooding, the greatest investment someone can make in today’s economy is to protect their assets adequately.

As an alternative, consider changing the policy on goods from “Replacement Value” to “Actual Cash Value.” With Citizen’s homeowner’s policy, the replacement value is half of the value of a home. Keep in mind, however, that like raising a deductible, the policy will no longer guarantee replacement of items but instead give cash for the current value of items – leaving you to pay the difference.

To learn more call 1.888.525.2210 visit Floridainsurance.com.

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